Morning Commentary: Preferreds open trading mixed; Fidus Investment baby bonds improve

By Abigail W. Adams

Portland, Me., Feb. 14 – The preferreds market looked poised for another volatile session on Wednesday with the Wells Fargo Hybrid & Preferred Securities Financial index again seesawing between positive and negative territory and the U.S. iShares Preferred Stock ETF down.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.04% early in the session. A short time later, the index was down 0.01%. The U.S. iShares Preferred Stock ETF was down 0.16%.

The broader equity markets are also seesawing between early morning losses and late morning rebounds after the release of much anticipated data on inflation.

With the consumer price index up 0.5% and the core consumer price index up 0.3% in January, fear of rising inflation and an acceleration of interest rate hikes from the Federal Reserve continue to impact the markets.

While the tumult in the markets continues, Fidus Investment Corp.’s recently priced 5.875% notes due 2023 were up in early trading. The notes listed for trade on Nasdaq under the ticker “FDUSL” last week.

Fidus’ baby bonds are one of the few recent deals to trade above their issue price. The 5.875% notes were up to $25.25 early in Wednesday’s session, an increase of 1 cent, or 0.39%.

Fidus priced $43.48 million of the $25-par five-year notes on Jan. 31.

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